Presentation to Investors & Analysts 2020 Q1 Presentation - PowerPoint PPT Presentation

Presentation to Investors & Analysts 2020 Q1 Presentation

Disclaimer • From time to time, Africa Prudential Plc (“ Afriprud ”) or the (“Company”) make written and/or oral forward-looking statements in presentations (including this presentation) and other communication. In addition, representatives of the Company may make forward-looking statements orally to analysts, investors, the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to, statements regarding the Company’s objectives and priorities for 2020, and beyond and strategies to achieve them, and the Group’s anticipated financial performance. Forward looking statements are typically identified by words such as “ will ” , “ should ” , “ believe ” , “ expect ” , “ anticipate ” , “ intend ” , “ estimate ” , “ may ” , “project” and “ could ” . • By their very nature, these statements require the Company to make assumptions and are subject to inherent risks and uncertainties, general and specific. In the light of uncertainties related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyond the Company’s control and the effects of which are difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include, exchange rate, market exchange, and interest rate, operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Company and we caution readers not to place undue reliance on the forward-looking statements. • Any forward looking statements contained in this presentation represent the views of management only as at the date hereof and are presented for the purpose of assisting the company’s investors and analysts in understanding its financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Africa Prudential does not Excellence undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. • The information used in this presentation were obtained from several sources that the Company believes are reliable. Whilst Africa Prudential has taken all reasonable care to ensure the accuracy of the information herein, neither Africa Prudential nor any of its subsidiaries/affiliates makes representation or warranty, express or implied, as to the accuracy and correctness of the information. Thus, users are hereby advised to exercise caution in attempting to place reliance on these information and carry out further research or seek the opinion of professional advisers before reaching conclusions regarding their investment decisions. 2020 Q1 Presentation

Presentation Outline • C ompany Overview • O perating Environment • F inancial Review • Digital Technology • Outlook • Appendix 2020 Q1 Presentation

OVERVIEW 2020 Q1 Presentation

Overview Transforming the African continent through innovative solutions, superior investor relations and business support services. 600,000 Aggregate lives on +10million The Only Listed Investor EasyCoop Services firm in West Africa Automated Cooperative User-Capacity Platform. Management Solution. with over 250,000 shareholders. Leading Registrar with Certified on the First USSD-based solution in the 5 Decades NSE CGRS Nigerian Capital Market (Personal Registrar *4018#). Track Record of Innovation. Corporate Governance Rating System. Excellence Ranked 3 rd Core Values +3million on the Nigerian Stock Exchange in terms of dividend yield with 6 Consistent dividend pay-out investor accounts for proprietary years average dividend yield of since listing. enterprise. 14.07%. 2020 Q1 Presentation

Our Journey So Far 2017 2020-2021 2012 1970 Business Business Company Birth Name Change Transformation Expansion We changed our name to • We changed business name to • Started as a department of • Continuation of the African • Africa Prudential Plc. Africa Prudential Registrars Plc. legacy United Bank for Africa continent transformation Plc (UBA). through innovative Commenced the redesign of • We became the first Registrar • solutions, superior investor our Core Solutions firm to be listed on NSE . Registered UBA’s Initial Public • relations and business (Greenpole, EasyCoop etc.) Offering. support services. Commenced Digital • Transformation of company. Incorporation Business Acquisition Product Innovation Opened an over subscribed • Incorporated as UBA Registrars Launched its own inhouse • • Rights Issue for additional One Limited. Innovation Lab. Billion Ordinary Shares of 50 Kobo each. Grew total asset base to about Intensified engagement of • • N14.1 billion and increased Cooperative businesses for the Acquired UAC Registrars • client base to 50 companies. EasyCoop product. Limited. 2006 2013 2019 2020 Q1 Presentation

Our Competitive Advantage Technology Support Our activities are geared towards leveraging • technology to create superior value and transform customer experience across our businesses. Management Team To this end, our processes are technology- • Experience driven for effective and efficient service delivery. Individually, each management staff member • has an average of 15 years in our industry. As such we have an in-depth understanding of • our industry. Durable Exposure . With experience spanning three decades, we • have had faced tough times and numerous economic turbulence. Synergy with Industry These experiences have helped us anticipate • Stakeholders and predict our environment with precision. We are attuned to symbiotic relationship • founded on mutual respect with industry stakeholders, regulators and other Capital Market Operators. Strategic Location Africa Prudential Plc is strategically located in • Lagos, Port-Harcourt and Abuja. As such we are within the hub of the core • activities moving the economy. 2020 Q1 Presentation

OPERATING ENVIRONMENT 2020 Q1 Presentation

Snapshot Declining Capital Market Activities Challenging Macroeconomic Environment • Due to the tough business landscape, there has been a slowdown in the number of new • The slow recovery of the economy coupled with listings. the outbreak of the covid-19 pandemic has • Reduced clients’ activities as a result of weak impacted the performance of the company and its corporate performance. clients. We effectively deployed our business • Poor investors’ confidence in the continuity plan to sustain our operations with economy stemming from unfavourable minimal disruption. regulations. Digital Technology Regulations With the launch of our Innovation Lab, we are • • Recent regulatory mandates/ reforms strategically positioning our business to take constraining current business models e.g. e- advantage of emerging concepts in machine dividend mandates, return of dividend fund, learning, AI and Big data to simplify our share dematerialization etc. operations and introduce disruptive solutions to our customers. 2020 Q1 Presentation

Global Impact of COVID-19 Confirmed Cases of COVID-19 Infection around the World Global Impact Over 2 million people infected with close to 200,000 • death worldwide as at April 23, 2020. Over 1.7 Billion people are under government enforced • lockdown. Global economy is predicted to lose over $2.7 Trillion • while global output is projected to shrink by 3% in 2020. About 47 Million people are projected to lose their jobs • globally. Significant drop in Global commodity prices with the Oil • price crashing from a peak of c. $60pb in Jan. 2020 to below $30pb in Q1 2020. Prices for US WTI Crude falling below $0pb into the negative territory on Monday April 20 th . Sell off in global equity markets with a widening gap • between the high-yield corporate and emerging market sovereign spreads. Reversal of Foreign Portfolio investment flows into • emerging market funds. Lingering dollar funding shortages have emerged amid • the general rebalancing of portfolios toward cash and safe haven assets. 25,000 > 50,000 0 -1000 Cases Cases Cases 2020 Q1 Presentation Source: WHO Situation Report, IMF World Economic Outlook April 2020